The government is weighing a more liberal import regime
even as the annual rate of inflation jumped to a record
6.73 per cent during the week ended February 3 compared
to 6.58 per cent for the previous week. The inflation
rate, based on the wholesale price index, stood at 3.98
per cent for the same period a year ago.
Reserve Bank's tight monetary policy and various fiscal
measures taken by the government have failed to contain
inflation and the government may make imports more liberal
to control inflation, commerce and industry minister Kamal
rise in inflation rate has been due to costlier primary
items, mainly non-vegetarian food articles and some manufactured
food articles, prices of some poultry, meat and meat products
rose exorbitantly. Pork became expensive by 26 per cent,
eggs were costlier by seven per cent and mutton prices
were higher by four per cent.
of urad, masur, moong, condiments, spices, fruits and
vegetables, bajra, niger seed, cotton seed oil, rape and
mustard oil, ground nut oil also rose.
the prices of barley, wheat, jaggery, suji, maida, atta
and imported oils declined, as did the prices of aviation
turbine fuel, naphtha, furnace oil and electricity.
Nath said the inflation is due to the constraints on the
supply side and the department of industrial policy and
promotion (DIPP) is looking at those gaps and if the need
arises imports would be made more flexible.
the recent past, the government and RBI have unleashed
a number of measures like duty cuts and interest rate
hikes to tame the price line.